Walmart Caught Hiding $76 Billion in Overseas Accounts

Walmart Caught Hiding $76 Billion in Overseas Accounts

Walmart has been dodging US taxes by storing $76 billion in assets abroad.

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A new report accuses Walmart of tax evasion to the tune of $3.5 billion in corporate income taxes by hiding more than $76 billion in assets in a network of subsidiaries in international tax havens where the company does not own any retail stores.

According to a report by Americans for Tax Fairness, Walmart has at least 78 offshore subsidiaries and branches and more than 30 have been created since 2009.

Walmart has used the accounts to stash more than $76 billion in assets. Over 90 percent of the company’s international assets are owned by subsidiaries in Luxembourg and the Netherlands. The remainder are stored in 13 other countries, none of which have been publicly reported to the US Securities and Exchange Commission, the report said.

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RT reported that despite having no stores in Luxembourg, Walmart companies reported $1.3 billion in profits there between 2010 and 2013. It paid a tax rate of less than 1 percent on that $1.3 billion.

Walmart is one of more than 340 international companies that use Luxembourg to slash their tax bills. Officially, Luxembourg has an income tax rate of 29 percent, but companies use the tiny European nation as a tax conduit because they can can send money in and out almost tax free.

Frank Clemente, executive director of Americans for Tax Fairness, said in a statement that, “Companies use tax havens to dodge taxes. It appears that’s the secret game Walmart is playing,” and “we are calling on Congress, federal agencies and international organizations to determine if Walmart is skirting the law when it comes to reporting its use of tax havens, using various schemes to dodge taxes, and getting a sweetheart deal from Luxembourg that is the equivalent of illegal state aid.”

 

Read the full story at RT

Photos courtesy of RT

 

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